Increasing the sales and profit margins is one of the most crucial priority of business owners. Thus, an owner of a local cafe asked me do some analysis on three different data to increase the number of customers which will increase profits.
11/13/2021
Increasing the sales and profit margins is one of the most crucial priority of business owners. Thus, an owner of a local cafe asked me do some analysis on three different data to increase the number of customers which will increase profits.
How could a cafe increases it’s profits?
To answer this question or to discover new information, or confirm an idea they already know, I plan to:
The visit data is from a device the owner of the Cafe put above the main door to count the visitors and have some extra variables.It has 6 variables and 8089 observations.
| Variable | Description |
|---|---|
| day | The date |
| Time | The hour of the date |
| ValueIn | The number of visitors |
| ValueOut | The number of visitors leaving the cafe |
| Turn In Rate(%) | The rate of visitors turn in |
| OutsideTraffic | The number of people outside the cafe |
The items data from the sales website and it has 5 variables and 96 observations.
| Variable | Description |
|---|---|
| item | The name of the item |
| count | How many pieces have been sold |
| price | The overall price |
| cost | The cost of the items |
| profits | The amount of money earned |
| Variable | Description |
|---|---|
| Total sales | The total number of sales |
| Items cost | The cost of the sold items |
| Taxes | Additional fee |
| Offers | Discount or some offers |
| Profits | The amount of money earned |
In visit data, the variables are positively skewed due to the large number of zeros and ones since it is hourly data.
It is not enough data since the cafe is open for less that a year.
-A large number of zeros is because of the hourly data.
## [1] "Flat white"
## [1] 64124.9
Flat White is the best seller and most profitable item!
## [1] "Flat white" "Aqua Carpathica Water 330ml" ## [3] "Hot latte" "Cappuccino"
The best selling items are drinks. Looks like we drink hot drinks even in the very hot weather since most of them are hot drinks. (At least water is on the list)
## [1] "hot coconut latte"
Maybe it is a good idea to think about replacing or removing this drink.
There is no Seasonality in my data.
To increase the number of visitors and thus profits, I suggest focusing on weekends and night hours as they tend to increase the number of people. Also, removing unprofitable products from then and increasing the number of profitable products may help.
Deploying the model is one of what I plan to do in the future to feed it with the new data after completing one year from the opening date.
The problem that I faced is that as I said, there is no seasonality in the data. I think that due to covid-19 lockdown and the limited number of customers that are allowed to enter the cafe. The Limitation was in the data since it is for a period that is less than a year.